Title 26 — Internal Revenue CodeRelease 119-73
§6412 Floor stocks refunds
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 65— - ABATEMENTS, CREDITS, AND REFUNDS › Subchapter Subchapter B— - Rules of Special Application › § 6412
Summary
Manufacturers, producers, or importers must get a credit or refund for the difference between the tax they paid on certain items and the tax that applies to those items on and after October 1, 2028, if the items were sold by them before that date, are held by a dealer on that date, unused, and meant for sale. To get the credit or refund, the dealer must have asked the maker for it before January 1, 2029, the maker must file the claim with the IRS by March 31, 2029, and by that date the maker must either pay the dealer the tax reduction or have the dealer’s written OK. No refund applies to taxable fuel in retail stocks at the place of sale or to fuel held for sale by its producer or importer. A dealer can be a wholesaler, jobber, distributor, or retailer. “Held by a dealer” means the dealer owns the item and nobody other than a dealer ever got it for use. The maker must keep whatever inventory records the IRS rules require to get the credit or refund. The same tax rules and penalties that apply to the taxes in sections 4071 and 4081 also apply to these credits and refunds, treated like tax overpayments.
Full Legal Text
Title 26, §6412
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)Where before October 1, 2028, any article subject to the tax imposed by section 4071 or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to such article on and after October 1, 2028, if claim for such credit or refund is filed with the Secretary on or before March 31, 2029, based upon a request submitted to the manufacturer, producer, or importer before January 1, 2029, by the dealer who held the article in respect of which the credit or refund is claimed, and, on or before March 31, 2029, reimbursement has been made to such dealer by such manufacturer, producer, or importer for the tax reduction on such article or written consent has been obtained from such dealer to allowance of such credit or refund. No credit or refund shall be allowable under this paragraph with respect to taxable fuel in retail stocks held at the place where intended to be sold at retail, nor with respect to taxable fuel held for sale by a producer or importer of taxable fuel.
(2)For purposes of this section—
(A)The term “dealer” includes a wholesaler, jobber, distributor, or retailer.
(B)An article shall be considered as “held by a dealer” if title thereto has passed to such dealer (whether or not delivery to him has been made), and if for purposes of consumption title to such article or possession thereof has not at any time been transferred to any person other than a dealer.
(b)No manufacturer, producer, or importer shall be entitled to credit or refund under subsection (a) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed under this section.
(c)All provisions of law, including penalties, applicable in respect of the taxes imposed by section 4071 and 4081 shall, insofar as applicable and not inconsistent with subsections (a) and (b) of this section, apply in respect of the credits and refunds provided for in subsection (a) to the same extent as if such credits or refunds constituted overpayments of such taxes.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2021—Subsec. (a)(1). Pub. L. 117–58 substituted “
October 1, 2028” for “
October 1, 2022” in two places and “
March 31, 2029” for “
March 31, 2023” in two places and substituted “
January 1, 2029” for “
January 1, 2023”. 2015—Subsec. (a)(1). Pub. L. 114–94 substituted “
October 1, 2022” for “
October 1, 2016” in two places and “
March 31, 2023” for “
March 31, 2017” in two places and substituted “
January 1, 2023” for “
January 1, 2017”. 2012—Subsec. (a)(1). Pub. L. 112–141 substituted in two places “
October 1, 2016” for “
July 1, 2012” and “
March 31, 2017” for “
December 31, 2012” and substituted “
January 1, 2017” for “
October 1, 2012”. Pub. L. 112–140, §§ 1(c), 402(b), temporarily substituted in two places “
July 7, 2012” for “
July 1, 2012” and “
January 6, 2013” for “
December 31, 2012” and temporarily substituted “
October 7, 2012” for “
October 1, 2012”. See Effective and Termination Dates of 2012 Amendment note below. Pub. L. 112–102 substituted in two places “
July 1, 2012” for “
April 1, 2012” and “
December 31, 2012” for “
September 30, 2012” and substituted “
October 1, 2012” for “
July 1, 2012”. 2011—Subsec. (a)(1). Pub. L. 112–30 substituted in two places “
April 1, 2012” for “
October 1, 2011” and “
September 30, 2012” for “
March 31, 2012” and substituted “
July 1, 2012” for “
January 1, 2012”. 2005—Subsec. (a)(1). Pub. L. 109–59 substituted “2011” for “2005” and “2012” for “2006” wherever appearing. 1998—Subsec. (a)(1). Pub. L. 105–178 substituted “2005” for “1999” and “2006” for “2000” wherever appearing. 1993—Subsec. (a)(1). Pub. L. 103–66 substituted “taxable fuel” for “gasoline” wherever appearing in heading and text. 1991—Subsec. (a)(1). Pub. L. 102–240 substituted “1999” for “1995” and “2000” for “1996” wherever appearing. 1990—Subsec. (a)(1). Pub. L. 101–508 substituted “1995” for “1993” and “1996” for “1994” wherever appearing. 1987—Subsec. (a)(1). Pub. L. 100–17 substituted “1993” for “1988” and “1994” for “1989” wherever appearing. 1984—Subsec. (a)(1). Pub. L. 98–369, § 735(c)(12)(A), (B), substituted “Tires and gasoline” for “Trucks, tires, tubes, tread rubber, and gasoline” in heading, and in text substituted “Where before
October 1, 1988, any article subject to the tax imposed by section 4071 or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale,” for “Where before
October 1, 1988, any article subject to the tax imposed by section 4061(a)(1), 4071((a)(1), (3) or (4), or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale (or, in the case of tread rubber, is intended for sale or is held for use),”, and struck out provision that no credit or refund shall be allowable under this paragraph with respect to inner tubes for bicycle tires (as defined in section 4221(e)(4)(B)). Subsec. (a)(2)(A). Pub. L. 98–369, § 735(c)(12)(C), substituted “The term ‘dealer’ includes a wholesaler, jobber, distributor, or retailer” for “The term ‘dealer’ includes a wholesaler, jobber, distributor, or retailer, or, in the case of tread rubber subject to tax under section 4071(a)(4), includes any person (other than the manufacturer, producer, or importer thereof) who holds such tread rubber for sale or use”. Subsec. (c). Pub. L. 98–369, § 735(c)(12)(D), substituted “4071” for “4061, 4071,”. 1983—Subsec. (a)(1). Pub. L. 97–424, § 516(a)(5), substituted “1989” for “1985” and “1988” for “1984” wherever appearing. 1978—Subsec. (a)(1). Pub. L. 95–618 struck out “and buses” after “Trucks” in heading. Pub. L. 95–599 substituted “1984” for “1979” and “1985” for “1980” wherever appearing. 1976—Subsec. (a)(1). Pub. L. 94–455, § 1906(a)(22), (b)(13)(A), redesignated par. (2) as (1) and struck out “or his delegate” after “Secretary”. Prior par. (1) had been repealed by Pub. L. 92–178, title IV, § 401(g)(5), Dec. 10, 1971, 85 Stat. 533. Subsec. (a)(2). Pub. L. 94–455, § 1906(a)(22), redesignated par. (4) as (2). Former par. (2) redesignated (1). Pub. L. 94–280 substituted “1979” for “1977” in two places and “1980” for “1978” in three places, respectively. Subsec. (a)(4). Pub. L. 94–455, § 1906(a)(22), redesignated par. (4) as (2). 1971—Subsec. (a)(1). Pub. L. 92–178 struck out par. (1) which related to general rule for floor stocks refunds on passenger automobiles, etc. 1970—Subsec. (a)(1). Pub. L. 91–614 substituted “January 1 of 1973, 1974, 1978, 1979, 1980, 1981, or 1982” for “
January 1, 1971,
January 1, 1972,
January 1, 1973, or
January 1, 1974”. Subsec. (a)(2). Pub. L. 91–605 substituted in two places “1977” for “1972” and “
March 31, 1978” for “
February 10, 1973”, and substituted “
January 1, 1978” for “
January 1, 1973”. 1969—Subsec. (a)(1). Pub. L. 91–172 struck out reference to Jan. 1, 1970, and inserted reference to Jan. 1, 1974. 1968—Subsec. (a)(1). Pub. L. 90–364 substituted “
January 1, 1970,
January 1, 1971,
January 1, 1972, or
January 1, 1973,” for “
May 1, 1968, or
January 1, 1969,”. Pub. L. 90–285 substituted “
May 1, 1968” for “
April 1, 1968”. 1966—Subsec. (a)(1). Pub. L. 89–368 substituted “
January 1, 1966,
April 1, 1968, or
January 1, 1969,” for “
January 1, 1966, 1967, 1968, or 1969,”. 1965—Subsec. (a)(1). Pub. L. 89–44, § 209(a), made floor stock refunds available with respect to passenger cars in dealers’ inventories on the various reduction dates for the passenger car tax and required claims for credit or refund to be filed on or before the 10th day of the 8th calendar month beginning after the date of the tax reduction. Subsec. (e). Pub. L. 89–44, § 209(d), repealed subsec. (e) which related to cross reference. 1964—Subsec. (a)(1). Pub. L. 88–348 substituted “
July 1, 1965” for “
July 1, 1964” in two places, “
October 1, 1965” for “
October 1, 1964”, and “
November 10, 1965” for “
November 10, 1964” in two places. 1963—Subsec. (a)(1). Pub. L. 88–52 substituted “
July 1, 1964” for “
July 1, 1963”, in two places, “
October 1, 1964” for “
October 1, 1963”, and “
November 10, 1964” for “
November 10, 1963” in two places. 1962—Subsec. (a)(1). Pub. L. 87–508 substituted “
July 1, 1963” for “
July 1, 1962” in two places, “
October 1, 1963” for “
October 1, 1962”, and “
November 10, 1963” for “
November 10, 1962” in two places. Subsec. (d). Pub. L. 87–456 repealed subsec. (d) which related to floor stock refunds with respect to any sugar or articles composed in chief value of sugar. Pub. L. 87–535 substituted “
June 30, 1967” for “
December 31, 1962” after “paid and which, on”, and “
September 30, 1967” for “
March 31, 1963” after “delegate on or before”. 1961—Subsec. (a)(1). Pub. L. 87–72 substituted “
July 1, 1962” for “
July 1, 1961” in two places, “
October 1, 1962” for “
October 1, 1961”, and “
November 10, 1962” for “
November 10, 1961” in two places. Subsec. (a)(2). Pub. L. 87–61, § 206(c), inserted tubes in heading, authorized credit or refund for articles subject to the tax imposed by section 4071(a)(3), prohibited credit or refund with respect to inner tubes for bicycle tires, and substituted “
October 1, 1972” for “
July 1, 1972” in two places, “
February 10, 1973” for “
November 10, 1972” in two places, and “
January 1, 1973” for “
October 1, 1972”. Subsec. (a)(3). Pub. L. 87–61, § 206(d), repealed par. (3) which related to 1961 floor stocks refund on gasoline. Subsec. (d). Pub. L. 87–15 substituted “
December 31, 1962” for “
September 30, 1961” after “paid and which, on”, and “
March 31, 1963” for “
September 30, 1961” after “delegate on or before”. 1960—Subsec. (a)(1). Pub. L. 86–564 substituted “
July 1, 1961” for “
July 1, 1960” in two places, “
October 1, 1961” for “
October 1, 1960”, and “
November 10, 1961” for “
November 10, 1960” in two places. Subsec. (d). Pub. L. 86–592 substituted “
September 30, 1961” for “
June 30, 1961” after “and which, on”. 1959—Subsec. (a)(1). Pub. L. 86–75 substituted “
July 1, 1960” for “
July 1, 1959” in two places, “
October 1, 1960” for “
October 1, 1959” and “
November 10, 1960” for “
November 10, 1959” in two places. Subsec. (a)(3), (4). Pub. L. 86–342 added par. (3) and redesignated former par. (3) as (4). 1958—Subsec. (a)(1). Pub. L. 85–475 substituted “
July 1, 1959” for “
July 1, 1958” in two places, “
October 1, 1959” for “
October 1, 1958”, and “
November 10, 1959” for “
November 10, 1958” in two places. Subsec. (d). Pub. L. 85–859 required filing of claims for refund on or before Sept. 30, 1961. 1957—Subsec. (a)(1). Pub. L. 85–12, substituted “
July 1, 1958” for “
April 1, 1957” in two places, “
October 1, 1958” for “
July 1, 1957”, and “
November 10, 1958” for “
August 10, 1957” in two places. 1956—Subsec. (a). Act
June 29, 1956, in par. (1), substituted “
April 1, 1957” for “
April 1, 1956” in two places, “section 4061(a)(2)” for “section 4061 (a) or (b)”, and inserted provisions requiring claims for refund to be made on or before
August 10, 1957, inserted provisions relating to trucks and buses, tires, tread rubber, and gasoline as par. (2), defined “dealer” in the case of tread rubber subject to tax under section 4071(a)(4) of this title in par. (3), and struck out pars. (4) and (5). Former par. (4), which related to reimbursement of dealers, was covered generally by pars. (1) and (2). Former par. (5) was covered by subsec. (b). Act Mar. 29, 1956, substituted “
April 1, 1957” for “
April 1, 1956” in two places, and “
July 1, 1957” for “
July 1, 1956”. Subsec. (b). Act
June 29, 1956, redesignated par. (5) of subsec. (a) as subsec. (b) and substituted “manufacturer, producer, or importer” for “person”, and struck out provisions that required claims for credit or refund to be filed before
July 1, 1956. Former subsec. (b) was covered by par. (2) of subsec. (a). Act Mar. 29, 1956, substituted “
April 1, 1957” for “
April 1, 1956” in three places, and “
July 1, 1957” for “
July 1, 1956”. Subsec. (c). Act
June 29, 1956, included taxes imposed by section 4071 of this title. Subsec. (d). Act
May 29, 1956, substituted “1961” for “1957”. 1955—Subsecs. (a), (b). Act Mar. 30, 1955, substituted “
April 1, 1956” for “
April 1, 1955” and “
July 1, 1956” for “
July 1, 1955” wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date
of 2021 AmendmentAmendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 80102(f) of Pub. L. 117–58, set out as a note under section 4041 of this title.
Effective Date
of 2015 AmendmentAmendment by Pub. L. 114–94 effective Oct. 1, 2016, see section 31102(f) of Pub. L. 114–94, set out as a note under section 4041 of this title. Effective and Termination Dates of 2012 AmendmentAmendment by Pub. L. 112–141 effective
July 1, 2012, see section 40102(f) of Pub. L. 112–141, set out as a note under section 4041 of this title. Amendment by Pub. L. 112–140 to cease to be effective on
July 6, 2012, with text as amended by Pub. L. 112–140 to revert back to read as it did on the day before
June 29, 2012, and
Amendments
by Pub. L. 112–141 to be executed as if Pub. L. 112–140 had not been enacted, see section 1(c) of Pub. L. 112–140, set out as a note under section 101 of Title 23, Highways. Amendment by Pub. L. 112–140 effective July 1, 2012, see section 402(f)(1) of Pub. L. 112–140, set out as a note under section 4041 of this title. Amendment by Pub. L. 112–102 effective Apr. 1, 2012, see section 402(f) of Pub. L. 112–102, set out as a note under section 4041 of this title.
Effective Date
of 2011 AmendmentAmendment by Pub. L. 112–30 effective Oct. 1, 2011, see section 142(f) of Pub. L. 112–30, set out as a note under section 4041 of this title.
Effective Date
of 1993 AmendmentAmendment by Pub. L. 103–66 effective Jan. 1, 1994, see section 13242(e) of Pub. L. 103–66, set out as a note under section 4041 of this title.
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–369 effective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of Pub. L. 97–424, to which such amendment relates, see section 736 of Pub. L. 98–369, set out as a note under section 4051 of this title.
Effective Date
of 1978 AmendmentAmendment by Pub. L. 95–618 applicable with respect to articles sold after Nov. 9, 1978, see section 231(g) of Pub. L. 95–618, set out as a note under section 4222 of this title.
Effective Date
of 1971 AmendmentAmendment by Pub. L. 92–178 applicable with respect to articles sold on or after the day after Dec. 10, 1971, see section 401(h)(1) of Pub. L. 92–178, set out as a note under section 4071 of this title.
Effective Date
of 1968
Amendments
Pub. L. 90–364, title I, § 105(c), June 28, 1968, 82 Stat. 266, provided that: “The
Amendments
made by this section [amending this section and section 4061 and 4251 of this title] shall take effect as of April 30, 1968.” Pub. L. 90–285, § 1(b), Apr. 12, 1968, 82 Stat. 92, provided that: “The
Amendments
made by subsection (a) [amending this section and section 4061 and 4251 of this title] shall take effect as of March 31, 1968.”
Effective Date
of 1965 AmendmentAmendment by Pub. L. 89–44 effective June 22, 1965, see section 701(a) of Pub. L. 89–44, set out as a note under section 4161 of this title.
Effective Date
of 1962
Amendments
Amendment by Pub. L. 87–535 effective Jan. 1, 1962, see section 19(a) of Pub. L. 87–535,
July 13, 1962, 76 Stat. 167. Amendment by Pub. L. 87–456 effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after Aug. 31, 1963, see section 501(a) of Pub. L. 87–456, title V,
May 24, 1962, 76 Stat. 78.
Effective Date
of 1961 AmendmentAmendment by Pub. L. 87–61 effective June 29, 1961, see section 208 of Pub. L. 87–61, set out as a note under section 4041 of this title.
Effective Date
of 1958 AmendmentAmendment by Pub. L. 85–859 effective on first day of first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1(c) of Pub. L. 85–859, Sept. 2, 1958, 72 Stat. 1275.
Effective Date
of 1956
Amendments
Amendment by act
June 29, 1956, effective
June 29, 1956, see section 211 of act
June 29, 1956, set out as a note under section 4041 of this title. Amendment by act
May 29, 1956, effective as of Jan. 1, 1956, see section 22 of act
May 29, 1956, ch. 342, 70 Stat. 221. Floor Stock Refunds Pub. L. 89–44, title II, § 209(b),
June 21, 1965, 79 Stat. 142, provided that where any article subject to taxes under section 4111, 4121, 4141, 4151, 4161, 4191 or 4451 of this title before
June 21, 1965, or subject to taxes under section 4061(b), 4091(1), or 4131 of this title before Jan. 1, 1966, had been sold by the manufacturer, importer or producer and on such date held by the dealer and not used, there was to be credited or refunded to the manufacturer, importer or producer an amount equal to the difference between the tax paid by him on his sale of the article and the amount of tax made applicable to the article on such date where certain conditions were satisfactorily met. Extension of Time for Filing Claims for Floor Stocks Refunds Pub. L. 91–642, § 1, Dec. 31, 1970, 84 Stat. 1880, provided that if a claim for credit or refund was filed by a manufacturer, importer or producer on or before the 90th day after Dec. 31, 1970, such filing was deemed to have satisfied the requirements of section 209(b)(1)(A) of Pub. L. 89–44 for filing on or before Feb. 10, 1966, or Aug. 10, 1966. Refunds Respecting Consumer Purchases Pub. L. 89–44, title II, § 209(c),
June 21, 1965, 79 Stat. 143, provided that if after
May 14, 1965, but before
June 21, 1965, a new automotive item subject to the tax imposed by section 4061(a)(2) of this title, or a new self-contained air-conditioning unit subject to the tax imposed by section 4111 of this title, had been sold to an ultimate purchaser, there was to be credited or refunded to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by the manufacturer, producer, or importer on his sale of the article and the tax made applicable to the article on such date if certain conditions were met.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6412
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73